Customer Loyalty… It’s More Than Statistics!

I was recently having a conversation with some of my industry friends about Customer Loyalty and a growing trend of compromise we are seeing in the industry. Customer Loyalty Programs are still “fairly new” in the marketplace and therefore the adoption rates continue to increase rapidly, however the early adopter stage has long passed and now we are starting to see some compromises being introduced into some of these programs.

The trend we have been noticing and others have seen as well Is what I like to call “Statistical Sanitization”. This is where for various reasons programs start to be slanted in a way that the statistics tell the story that you want them to tell, rather than analyzing the statistics and then developing the story… the truth! When you start to segment, departmentalize, and distribute only the data you are most interested in… it can become borderline gaming the system.

Customer Loyalty Program are only holistic if they have the following characteristics:
1) The invitation to participate is 100% inclusive of your entire customer base
2) The survey is detailed and tells you what your customers REALLY think
3) It allows you enough deep dive information to drive continuous improvements in your business
4) It acts like an early warning system and allows you to identify brush fires before they become forest fires
5) It includes closed loop follow-up conversations directly with your customers
6) Although It is very important to be able to segment, departmentalize, and distribute the data… you need to start with the entire sample first.

A few goals I always have in Customer Loyalty Programs:
1) You need a single customer loyalty metric. (NPS, OSAT, Index, etc)
2) You need to understand how each product and functional area effects your Company Loyalty
a. You need actionable feedback/data that correlates to loyalty for each product you have and each functional areas of your business
3) The goal is to drive continuous improvement actions at all levels of your business
4) Continuous Improvements should be tracked and positively influence the Company Loyalty over time

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